Alliance Boots, the high street chemist, reported a rise in profits after a
strong performance by its wholesale pharmaceuticals business helped it
weather the slowdown in consumer spending.

Pre-tax profit rose to £637m in the year to the end of March, up from £460m the previous year. Revenue increased 15.1pc to £20.2bn.

However like-for-like sales in the UK health and beauty division were up just 0.5pc, compared to a 3pc increase on that basis last year.

"Looking to the year ahead, we are planning for consumer demand to be subdued and expect governments to continue to seek ways to contain growth in healthcare expenditure," said Stefano Pessina, executive chairman of Alliance Boots.

The pharmacy chain had net borrowings of £7.84bn at the end of the financial year, a £546m reduction on the previous year.

Boots also lost its chief executive, the former HBOS CEO Andy Hornby, in March this year. He resigned with immediate effect after less than two years in order to "take a few months break" from corporate life.